NAV Cockpit in SAP Financial Asset Management (FAM)

Challenge

The client, a major international insurance player, in the path of digital transformation of its applications expressed the need to divest its asset management system and replace it with an integrated modular solution to be able to manage these processes through the SAP suite alone, already present at the Group level. Specifically, a series of functionalities were implemented in the SAP FAM module to determine all the components needed to calculate Net Asset Value, avoiding the use of other external platform.

Solution

The Qintesi working group within the SAP Financial Asset Management (FAM) solution developed a cockpit capable of visualizing all the individual processes required for NAV calculation in an optimal and immediate way. The guiding principles that guided the development were in particular the possibility of integrating the newly implemented functionalities with those already in use at the Group for asset management (SAP FAM) and banking liquidity (SAP CLM), with the aim of creating a single environment where NAV calculation could be performed. Specifically, the dashboard has been structured in such a way as to check in real time all the steps required to calculate the value of the net asset value (NAV) and the price of the share representing each investor’s participation in the assets. The solution also includes additional features such as:

• Miscellaneous Cockpit to standardize and speed up in SAP the reconciliation of Bank Account and Securities Deposit transactions and balances. Specifically, the cockpit makes it possible to flexibly reconcile bank movements captured in the SAP CLM solution and to quickly integrate into the SAP FAM sectional “Miscellaneous” transactions from bank counterparties to be assigned to the relevant portfolios
• Portfolios management with different commission classes
• Management of capital and economical items for which there is an automatic calculation integrated into the solution, specifically:
  • Management and custody fees

  • Certification and publication costs

  • Overperformance commissions with the possibility of customizing calculation algorithms
  • Calculation of rebates

  • Calculation of Interest and Withholding Credits